China’s PMI worsens as US trade war hits home
Weaker Chinese and regional data raise the risk that the global economy is edging towards a synchronised slowdown
Beijing — China’s manufacturing sector worsened in October as the trade war hit home, adding to risks the global economy may be edging towards a synchronised slowdown. China’s official factory gauge missed estimates with a reading of 50.2 and its exports sub-index slumped to the lowest reading since early 2016. In other data released Wednesday, industrial output for September in South Korea and Japan came in below estimates, as did third-quarter output in Taiwan. With eurozone economic data disappointing and emerging markets rattled by tumbling currencies and an exodus of capital, the world is increasingly looking to a turbocharged US economy to drive global expansion alone. Yet the US boom is also expected to moderate next year as the effect of tax cuts wane, and trade tariffs and a strong dollar drag on growth. “Outside the US, the list of indicators showing synchronous slowing growth is getting longer,” said Rob Subbaraman, head of emerging markets economics at Nomura Holdings in...
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